Koko’s improper defiance

Let us acknowledge that there is a short-term cost-avoidance benefit to Eskom from refusing to sign the power purchase agreements that government has committed to with renewable energy projects.

There is thus not only corporate but personal self-interest supporting Eskom interim CEO Matshela Koko’s defiance of government, or at least of official policy and procurement undertakings.

Prioritisation of short-term cost-avoidance might make sense internally (perhaps it will have a positive effect on Eskom’s credit rating?), but is certainly not a responsible government strategy for developing the electricity supply sector. Clouding the issue of electricity generation costs to try to pass off short-term corporate benefits as savings for the nation is Koko’s chosen communication strategy and should be rejected as such. It is not an honest attempt to interrogate the value proposition of independent power producer procurement, renewable or other sources.

Given the silence of the public enterprises ministry and other relevant government departments in the face of a state-owned enterprise reneging on renewable energy commitments, one might surmise that the sustained belligerence of its CEO has sanction in the corridors of power. Whether this is an attempt to clear the decks and beef up the balance sheet for nuclear procurement, or is quite unrelated, it is completely incompatible with the public interest and long-term cost management of electricity supply, and inappropriate behaviour for a public enterprise.

Richard Worthington

Westdene